Spanish electricity company Iberdrola presented its financial results for 2018. This year, the company’s gross operating income (EBITDA) increased by 27.7 percent, helped by a boost in Latin America, the recovery of the hydroelectric business in Spain, and a higher growth rate in all its businesses during the second half of the year.
In a report published on its website, the company stated that its EBITDA grew to €9,350 billion, while net profits rose by 7.5 percent.
Rising net profits
Iberdrola achieved a net profit of €3.014 billion in 2018, 7.5 percent more than in the previous year. It is the first time the group’s earnings have exceeded €3 billion.
The Chairman of Iberdrola, Ignacio Galán, assessed group results. The executive stated that “the earnings are proof of the success of a sustainable model and they encourage us to continue pushing for the transition to a low carbon economy.” “The fight against climate change is an opportunity,” he added.
Investments at the top of priorities
The company’s investments amounted to €5.32 billion in 2018 alone reaching nearly €20 billion over the past four years. Furthermore, Iberdrola has 6,606 MW of renewable capacity under construction (1,514 MW of offshore wind capacity, 2,548 MW onshore wind, 628 MW of solar technology and 1,916 MW of hydroelectric power), and 3,508 MW in new gas combined-cycle plants.
Improvements in income and benefits
Iberdrola’s revenues stood at €35.075 billion in 2018, up by 12.2 percent from 2017. Gross profit also improved, reaching €15.435 billion, up 15.5 percent year on year.
Gross operating profit (EBITDA) stood at €9.349 billion, 27.7 percent up on the previous year. Performance has been positive in all businesses, with growth reaching 10 percent. Regulated businesses and with long-term contracts now contribute to 77 percent of global EBITDA, in line with the company’s strategy.
Results per division
- In Networks, EBITDA stood at €4.915 billion, representing an increase of 16.2 percent from previous year, with improvements in all countries.
- In Renewables, EBITDA amounted to €2.444 billion, a 39.3 percent increase, driven by growth in all markets thanks to higher production (+21.7%) and increased installed capacity, which now stands at 29,177 MW worldwide.
- Generation and Supply also posted improved results in all geographical regions, reaching EBITDA of €2.038 billion, up by 39.3 percent, driven by the return to normal conditions in the UK retail market, increased generation capacity in Mexico and increased demand in Spain.
Results to enable a rise of the dividend by 7.7 percent
The profit obtained by Iberdrola over the course of 2018 allows it to meet its commitment to increasing shareholders’ remuneration in line with results. Thus the company’s dividend for the financial year last ended will amount to €0.351 gross per share, 7.7 percent more than what was paid against 2017 earnings.
The firm’s Board of Directors has also approved a new edition of the share buy-back program, which cancels out the dilutive effect of the scrip dividend while holding the number of company shares at 6.24 billion.
Total shareholder return (TSR) in 2018 stood at 14 percent vis-à-vis -11.5% of Ibex35 and +5.2 percent of the Eurostoxx Utilities benchmark index.
Social and environmental impact
Added to these results, the company is also promoting economic and social development in countries where it operates, in line with the UN Sustainable Development Goals (SDGs) for 2030 which the group has incorporated to its strategy.
The group’s staff exceeds 34,000 people – 99 percent with permanent contracts, which it provides 1.6 million hours of training a year. Also, it incorporated 1,652 workers to its team last year, while generating a total of 425,000 jobs.
On the other hand, the company is also moving forward with its commitment to reducing Co2 emissions; which in Spain sank to 82 gr CO2/kWh as opposed to 302 gr CO2/kWh for the European industry average.
In terms of equal opportunities, Iberdrola has approved a diversity policy for its Board of Directors. It has become the Ibex35 blue-chip index company with the highest percentage of women on its Board of Directors (42.8 percent).
Iberdrola is one of the word’s leading wind power developers. It supplies clean energy to over 30 million people in Spain, United States, United Kingdom, Brazil, and other nations.
For more information, check Energía16